The money is empty and the heart is panicking. At the end of the year, a series of impacts caused textile bosses to say, “We can’t bear it anymore!” Both upstream and downstream have entered a cold state cycle. This year’s spandex can be said to have risen to unprecedented heights, but the recent price increase in spandex raw materials seems to have stagnated for a long time, with prices falling by 500-2,000 yuan/ton from time to time. Some weaving manufacturers have already lowered the price of gray fabrics in line with costs, and some manufacturers are selling gray fabrics containing spandex. The market competition is fierce.
01
The trend of spandex is weak and the downward trend is obvious
The trend of spandex tends to be weak, with prices falling 6 times since December. Compared with the occasional price reduction of 500 yuan/ton in November, it can be said that it has continued to shrink, with the highest price reduction of 2,000 yuan/ton. The price reduction of 500-2,000 yuan/ton makes people’s eyes pop out.
The current price of spandex 20D is 14,000 yuan/ton lower than this year’s highest price, a decrease of 10%; the spandex 30D price is 11,500 yuan/ton lower than this year’s highest price, a decrease of 16.88%; the spandex 40D price is lower than this year’s highest price The price reached 13,500 yuan/ton, a decrease of 12.57%.
Although the current price reduction has not returned to the previous price, it is also a signal that cannot be ignored. Spandex has been booming in the early stage of this year. Except for the certain factors of speculation, the price of spandex has indeed reached a peak before. However, as the saying goes, if the price of spandex is reduced as it is frequently and sharply, it will bring certain consequences to the weaving enterprises. It is a “blow in the face”. Even if you sell gray fabrics at a guaranteed cost, you may not be able to remove the inventory, and the possibility of losing money is very high.
02
“One end is raised” cannot save the spandex that has fallen and shrunk
At present, the imbalance between supply and demand in the spandex market is intensifying, and some supply units are opening higher. In the future, a small number of high-cost units may reduce production and suspend production, and some new production capacity will be released in the central and western regions. Under this situation, the weaving load on the demand side is low and the demand is sluggish, such as the four-sided elastic that is booming this year. In the early stage, due to the excessive rise in spandex and tight supply, many downstream manufacturers rushed to rush for production. Nowadays, spandex products are on a gradual downward trend, and the market is deserted. Many companies say that their orders are very few, and manufacturers’ moods will inevitably change. Unless necessary, their enthusiasm for stocking will be greatly dampened.
With the further tightening of epidemic prevention measures, many manufacturers are selling goods during sales promotions at the end of the year to reduce the backlog of inventory. Not long ago, a manufacturer that specializes in four-sided bombs said that it used to be able to travel 600,000 meters a week, but now it only reaches 200,000 meters a week, which is reduced by half. More than anything. And the price has also dropped a lot, at least 0.2 yuan/meter, and they are all being sold at a loss.
Because of the short storage time of four-sided bombs, many bosses are afraid of them. Once the inventory rises, the sense of crisis will also rise sharply. Instead of scrapping it after a long time or the price of raw materials and gray fabric depreciating, it is better to protect the capital and clear the inventory now. As a result, the delivery of gray fabrics is extremely slow, and the price of spandex has been decreasing, making it impossible to buy more spandex. According to data monitoring from Silkdu.com, the current operating rate of water-jet and air-jet looms in Shengze is 72%, and the inventory of gray fabrics is about 31 days.
Things happen frequently at the end of the year, and no one dares to say that they have a clear picture. Today this factory has stopped production, and tomorrow that dyeing factory will announce a holiday. It is difficult to move goods, people are miserable, and money is not going up. The downward trend in spandex prices is an inevitable trend. Bosses should pay more attention to the fluctuating market conditions at the end of the year and be cautious.
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